Key Fact Statement (KFS) Policy
Statutory standardization of Key Fact Statement (KFS) across all digital lending products of Udaann Capital NBFC Ltd.
1. Purpose & Mandate
Pursuant to RBI circular on 'Harmonization of Key Fact Statement (KFS) for Loans', Udaann Capital NBFC Limited provides an unambiguous, standardized, and easily comprehensible Key Fact Statement (KFS) to every borrower before the execution of the loan contract. The borrower is not bound by the loan agreement until the KFS has been reviewed, understood, and consented to.
2. Mandatory Disclosures in KFS
Every Key Fact Statement provided by Udaann Capital includes the following mandatory parameters:
| Parameter | Description & Calculation Basis |
|---|---|
| Loan Amount / Principal | Total sanctioned loan limit approved by NBFC Underwriting Committee. |
| Annual Percentage Rate (APR) | The annual all-inclusive cost of credit, encompassing interest, processing fee, documentation fee, and statutory GST. |
| Interest Rate Type & Frequency | Reducing balance annual percentage rate; debited on the monthly repayment date. |
| Loan Tenure & EMI Amount | Total duration in months and exact equated monthly installment payable on the 5th of each calendar month. |
| Upfront Deductions | Processing fee (e.g., 2% + 18% GST). Deducted upfront from sanctioned principal before IMPS/NEFT disbursal. |
| Cooling-Off / Look-up Period | Statutory 72-hour window during which borrower can terminate loan without prepayment penalty. |
3. Illustrative APR Computation Formula
In strict accordance with RBI internal rate of return (IRR) methodology, APR is determined such that the net disbursed amount equals the present value of all future EMI cash flows:
Where N is tenure in months, and EMI_t is the scheduled monthly payment.
4. Strict Zero Hidden Charges Guarantee
Udaann Capital strictly adheres to the principle that no fee, cost, or charge shall be levied on the borrower that is not explicitly stipulated in the Key Fact Statement. Any charge not itemized in the KFS prior to execution is statutorily waived and void.